diff --git a/mercurial/cmdutil.py b/mercurial/cmdutil.py
--- a/mercurial/cmdutil.py
+++ b/mercurial/cmdutil.py
@@ -127,15 +127,16 @@ def make_file(repo, pat, node=None,
                               pathname),
                 mode)
 
-def matchpats(repo, pats=[], opts={}, head='', globbed=False):
+def matchpats(repo, pats=[], opts={}, head='', globbed=False, default=None):
     cwd = repo.getcwd()
     return util.cmdmatcher(repo.root, cwd, pats or [], opts.get('include'),
-                           opts.get('exclude'), head, globbed=globbed)
+                           opts.get('exclude'), head, globbed=globbed,
+                           default=default)
 
 def walk(repo, pats=[], opts={}, node=None, head='', badmatch=None,
-         globbed=False):
+         globbed=False, default=None):
     files, matchfn, anypats = matchpats(repo, pats, opts, head,
-                                        globbed=globbed)
+                                        globbed=globbed, default=default)
     exact = dict.fromkeys(files)
     for src, fn in repo.walk(node=node, files=files, match=matchfn,
                              badmatch=badmatch):
diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -1602,9 +1602,8 @@ def locate(ui, repo, *pats, **opts):
     Print all files under Mercurial control whose names match the
     given patterns.
 
-    This command searches the current directory and its
-    subdirectories.  To search an entire repository, move to the root
-    of the repository.
+    This command searches the entire repository by default.  To search
+    just the current directory and its subdirectories, use "--include .".
 
     If no patterns are given to match, this command prints all file
     names.
@@ -1622,7 +1621,7 @@ def locate(ui, repo, *pats, **opts):
         node = None
 
     for src, abs, rel, exact in cmdutil.walk(repo, pats, opts, node=node,
-                                             head='(?:.*/|)'):
+                                             default='relglob'):
         if not node and repo.dirstate.state(abs) == '?':
             continue
         if opts['fullpath']:
diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -832,6 +832,9 @@ class localrepository(repo.repository):
 
         if node:
             fdict = dict.fromkeys(files)
+            # for dirstate.walk, files=['.'] means "walk the whole tree".
+            # follow that here, too
+            fdict.pop('.', None)
             mdict = self.manifest.read(self.changelog.read(node)[0])
             mfiles = mdict.keys()
             mfiles.sort()
diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -382,10 +382,11 @@ def matcher(canonroot, cwd='', names=[],
     return _matcher(canonroot, cwd, names, inc, exc, head, 'glob', src)
 
 def cmdmatcher(canonroot, cwd='', names=[], inc=[], exc=[], head='',
-               src=None, globbed=False):
-    if not globbed:
+               src=None, globbed=False, default=None):
+    default = default or 'relpath'
+    if default == 'relpath' and not globbed:
         names = expand_glob(names)
-    return _matcher(canonroot, cwd, names, inc, exc, head, 'relpath', src)
+    return _matcher(canonroot, cwd, names, inc, exc, head, default, src)
 
 def _matcher(canonroot, cwd, names, inc, exc, head, dflt_pat, src):
     """build a function to match a set of file patterns
diff --git a/tests/test-backout.out b/tests/test-backout.out
--- a/tests/test-backout.out
+++ b/tests/test-backout.out
@@ -28,7 +28,6 @@ reverting a
 changeset 3:4cbb1e70196a backs out changeset 1:22bca4c721e5
 the backout changeset is a new head - do not forget to merge
 (use "backout --merge" if you want to auto-merge)
-b: No such file or directory
 adding a
 adding b
 adding c
diff --git a/tests/test-git-import.out b/tests/test-git-import.out
--- a/tests/test-git-import.out
+++ b/tests/test-git-import.out
@@ -31,7 +31,6 @@ a
 a
 % rename and modify
 applying patch from stdin
-copy2: No such file or directory
 a
 a
 b
@@ -40,7 +39,6 @@ a
 % one file renamed multiple times
 applying patch from stdin
 9 rename2 rename3 rename3-2 / rename3 (rename2)rename3-2 (rename2)
-rename2: No such file or directory
 rename3
 rename3-2
 a
diff --git a/tests/test-locate.out b/tests/test-locate.out
--- a/tests/test-locate.out
+++ b/tests/test-locate.out
@@ -3,18 +3,14 @@ adding b
 adding t.h
 adding t/x
 a
-NONEXISTENT: No such file or directory
 a
 b
 t.h
 t/x
-a: No such file or directory
-NONEXISTENT: No such file or directory
 b
 t.h
 t/x
 a
-NONEXISTENT: No such file in rev ce18e5bc5cd3
 a
 b
 t.h